Lagos - Some capital market operators have
expressed fears that the ongoing national energy crisis if not checked would
paralyse activities at the Nigerian capital market.
They stated on Tuesday in
Lagos that the energy crisis had already affected the level of activities in
the nation's bourse.
Mr Emeka Madubuike, President, Association of Stockbroking
Houses of Nigeria (ASHON), lamented that the level of activities in the market
had dropped drastically because of the energy crisis.
Madubuike said the stalemate had grounded the economy to
halt, adding that the capital market was passing through hard times.
"We are hoping that there will be clear vision of things by
next week with the new government,’’ Madubuike said.
He called on the incoming government to ensure prompt
settlement of all issues affecting economic growth and development.
Dr David Ogogo, Registrar/Chief Executive Officer, Institute
of Capital Market Registrars (ICMR), said that many companies would likely
close shop if the energy crisis lingered.
Also read: Etisalat bemoans ongoing fuel crisis
Ogogo said that companies had no choice than to close
operations to avoid incurring unnecessary overheads.
He said the impact on the market would be negative if quoted
companies declared losses due to the ongoing energy crisis that would increase
cost of operations.
"We are praying for positive development and hoping that
the whole thing is sorted out before the week runs out, if it continues this
way, it will affect the market adversely,’’ Ogogo said.
Mazi Okechukwu Unegbu, the former President, Chartered
Institute of Bankers of Nigeria (CIBN), described the development as
Unegbu said that volume of transactions in the market would
reduce as many investors would find it difficult to place their orders due to
the current energy crisis in the country.
He said the market was going through tough times due to
different dislocations in the economy.
Also speaking, Mr Sehinde Adenagbe, the Managing Director,
Standard Union Securities Ltd., said the development would drag down investment
and confidence in the market.
Adenagbe said that Nigerians were groaning under the present
situation and called for removal of fuel subsidy.
He said that fuel subsidy should be removed for Nigerians to
know the reality of the situation on ground.
Meanwhile, the NSE market turnover showed that 2.94 billion
shares worth N16.05 billion were traded by investors in 21,306 deals last week.
This was against 1.63 billion shares valued at N14.43
billion exchanged in 20,124 deals in the preceding week.
The Financial Services Industry led the activity chart with
2. 62 billion shares valued N8.19 billion transacted in 11,611 deals.
The Consumer Goods sector followed with a turnover of 82.64
million shares worth N4.75 billion achieved in 3,753 deals.
The third place was occupied by the Conglomerates Industry
with 73.97 million shares valued N365.50 million in 948 deals.
Consequently, the All-Share Index lost 167.31 points or 0.49
per cent to close at 34,272.09 points compared with 34,439.40 points due to
Also, the market capitalisation which opened at N11.697
trillion lost N53 billion or 0.45 per cent to close at N11.644 trillion.
A breakdown of the price movement chart showed that Vitafoam
topped the losers' chart in percentage terms, dropping 22.41 per cent or N1.43
to close at N4.95 per share.
R.T. Briscoe trailed with 13.04 per cent or 12k to close at
80k, while National Aviation Handling Company lost 10.59 per cent to close at
N6.08 per share.
On the other hand, Vono Products led the gainers' table in
percentage terms, growing by 29.79 per cent or 28k to close at N1.22 per share.
NEM Insurance grew by 29.41 per cent or 20k to close at 88k,
while Skye Bank appreciated by 18.43 per cent or 40k to close at N2.57 per